December 24, 2025 | 04:38 pm
TEMPO.CO, Jakarta - Jakarta Governor Pramono Anung Wibowo announced the provincial minimum wage (UMP) hike for 2026. The minimum wage next year increased 6.17 percent from Rp5,396,761 to Rp5.72 million.
In total, the minimum wage for Jakarta was raised by Rp333,115.
Pramono announced the new UMP figure after several meetings with the Wage Council. "Agreement has been reached to raise the minimum wage in Jakarta to Rp5,729,876 in 2026," said Pramono in a press statement at Jakarta City Hall on Wednesday, December 24, 2025.
According to Pramono, Jakarta follows the national formulation to determine its provincial minimum wage, as outlined under the Government Regulation Number 49 of 2025 concerning Wage Determination.
The latest wage set the UMP formula as follows: inflation + (economic growth x alpha), with the alpha index set between 0.5 and 0.9.
The alpha coefficient varies from one region to another, with provincial governments authorized to determine between 0.5 to 0.9.
Pramono explained that Jakarta government has opted to implement the alpha factor of 0.75, a figure he claimed has been mutually agreed upon by workers and employers involved in the Jakarta Wage Council.
The General Chairperson of the Indonesian Trade Union Congress Alliance (KASBI), Sunarno, had previously slammed Government Regulation Number 49 of 2025, which serves as a reference for the 2026 UMP determination. The drafting of this law lacked labor union participation, he said.
"And the timing was tight, so it was done just before Christmas and New Year, when we should have finished discussing the concerns about the wage hike," said Sunarno on December 20.
Anastasya Lavenia Yudi contributed to the writing of this article
Read: List of 2026 Provincial Minimum Wage Hikes Across Indonesia
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